An ongoing royalty is a recurring payment made by a company to a rights holder—often for patents, trademarks, or creative work—calculated as a percentage of sales or a set fee tied to product use. Think of it like paying a toll each time you use a patented road: it reduces per-unit profit but can grant access to valuable technology or brands. Investors care because ongoing royalties affect future cash flow, margins, and the company’s long-term cost structure and valuation.
injunctionregulatory
A court order that tells a person or company to stop doing (or requires them to start doing) a specific action, like selling a product, closing a deal, or carrying out a transaction. For investors it matters because an injunction can pause revenue-generating activities or delay mergers and trades—like a legal “pause button” that can quickly change a company’s cash flow, risk profile, and share price while the court matter is resolved.
patent validityregulatory
The legal strength of a granted patent — whether the patent would be upheld if challenged in court or during administrative review — determining if the holder truly has exclusive rights to an invention. For investors, patent validity matters because a strong, defensible patent can protect future sales and margins like a clear deed protects ownership of a house, while a weak or invalid patent raises the risk that competitors can copy the product and reduce expected returns.
direct infringementregulatory
Direct infringement occurs when a person or company actually copies, makes, uses, sells, or imports a product, process, or work that another party has an exclusive legal right to, without permission. Investors care because finding direct infringement can trigger lawsuits, court awards, or orders to stop sales — outcomes that can drain cash, interrupt revenue, and sharply affect a company’s value much like being forced to pull a bestselling product off the shelves.
cell-free DNAmedical
Fragments of DNA that float freely in the bloodstream after being released by dying or damaged cells, like puzzle pieces carried downstream that hint at what’s happening upstream. Investors care because measuring these fragments enables non‑invasive tests — for example to detect cancer, monitor treatment response, check pregnancy health, or spot organ rejection — so advances, approvals, or reimbursement changes can quickly affect companies that develop the tests and related technologies.
mrdmedical
MRD stands for minimal residual disease, the tiny number of cancer cells that can remain in the body after treatment and that may not show up on routine scans. Detecting MRD is like finding a few seeds left in a garden after clearing: it helps doctors predict the chance of relapse and measure how effective a therapy is, which investors watch because MRD results can influence clinical trial success, regulatory decisions, and a drug’s market potential.
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AUSTIN, Texas--(BUSINESS WIRE)--
Natera, Inc. (NASDAQ: NTRA), a global leader in cell-free DNA and precision medicine, today provided an update on a recent decision issued by the United States District Court in the District of Delaware regarding Natera’s litigation with ArcherDx and Invitae.
In a decision issued on April 6, 2026, the Court ordered an ongoing royalty to Natera of 30% on post-injunction revenues from infringing MRD-related product sales that fall within the exceptions to the injunction, which was issued by the Court on November 21, 2023. The jury had awarded an effective royalty of 20.5% on pre-injunction revenues, which remains unchanged. With respect to the non-MRD products, the jury’s verdict of patent validity and direct infringement also remains intact.
The Company stated:
“Natera is pleased that the Court upheld the validity of all three asserted MRD patents and preserved damages related to Invitae’s MRD-related products. The decision confirms a 30% ongoing royalty on post-injunction revenues and reinforces the strength of Natera’s innovation in this space.”
Natera has over 650 issued or pending patents, including a strong portfolio of MRD patents.
About Natera
Natera™ is a global leader in cell-free DNA and precision medicine, dedicated to oncology, women’s health, and organ health. We aim to make personalized genetic testing and diagnostics part of the standard-of-care to protect health and inform earlier, more targeted interventions that help lead to longer, healthier lives. Natera’s tests are supported by more than 400 peer-reviewed publications that demonstrate excellent performance. Natera operates ISO 13485-certified and CAP-accredited laboratories certified under the Clinical Laboratory Improvement Amendments (CLIA) in Austin, Texas, and San Carlos, California, and through Foresight Diagnostics, its subsidiary, operates an ISO 27001-certified and CAP-accredited laboratory certified under CLIA in Boulder, Colorado. For more information, visit www.natera.com.
Forward-Looking Statements
All statements other than statements of historical facts contained in this press release are forward-looking statements and are not a representation that Natera’s plans, estimates, or expectations will be achieved. These forward-looking statements represent Natera’s expectations as of the date of this press release, and Natera disclaims any obligation to update the forward-looking statements. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including with respect to developments in matters under dispute or litigation, or the scope of protection we establish and maintain for, and developments or disputes concerning, our intellectual property or other proprietary rights. Additional risks and uncertainties are discussed in greater detail in "Risk Factors" in Natera’s recent filings on Forms 10-K and 10-Q, and in other filings Natera makes with the SEC from time to time. These documents are available at www.natera.com/investors and www.sec.gov.
